R 322.1004 Marina lease conditions.

Rule 4. A lease shall provide for all of the following conditions to be maintained by both the lessee and the department: (a) A term of not more than 50 years. A lease may provide for its renewal or extension upon satisfactory performance during the prior term. (b) An advance annual rental fee to be determined by the department. The annual rental fee shall not be less than $50.00. The department shall review the annual rental fee once every 5 years and adjust the annual rental fee to reflect changes in the general economic conditions. The changes shall be based on the percentage change of the United States bureau of labor statistics 'all-items' index, and other economic indicators. (c) That the assignment or other agreement modifying the lease is not binding on the department unless approved in writing by the department. An executed copy of the assignment or agreement shall be furnished to the department for approval. (d) That the marina construction shall be completed within a specified term, normally not more than 2 years from the date of issuance of the lease. An extension of time may be granted by the department for just cause. The lease shall be forfeited if the lessee does not complete the marina within the specified time set forth in the lease or the extension authorized by the department. (e) That the construction and operation of the facility will not adversely impair the use of or destroy the waters or natural resources of the state. (f) That the facility shall be maintained in an aesthetically pleasing manner. (g) That the structures do not constitute a safety or navigation hazard and shall be maintained in good repair. (h) That the lessee shall have sole maintenance responsibility of the facility and shall remove structures and improvements on the leased premises after nonuse or abandonment. Nonuse or abandonment shall occur when the facility is not used for commercial purposes for 2 successive seasons following completion of construction or execution of a lease. (i) That upon nonuse or abandonment of the leased premises for marina purposes, or failure to construct or operate the marina facility in accordance with the lease conditions, the lessee shall execute and deliver to the department a release in recordable form of all his or her rights and interests in the lease premises. The release shall not relieve the lessee of the lease and surety bond requirements until all obligations have been met and the bond is duly discharged.